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Uk Slips To 18th Place On Eu Table Of Growth

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I've been hearing more and more good stuff about the prospects for the German economy over the next few years. Is there much foreign property investment going on there at the moment?

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I've been hearing more and more good stuff about the prospects for the German economy over the next few years. Is there much foreign property investment going on there at the moment?

Apparently. I read an article in 'Finanzen' recently (a German journal on finances, the website is www.finanzen.net but I don't think the article is online).

Gist: In May 2004, an American consortium made up of a Goldman Sachs fund (Whitehall) and a German agency (Cerberus) acquired 65,700 flats in Berlin for €2.1bn. Two months later, Fortress (?) took over a German agency, thus buying 82000 flats for just under €3.5bn. Other Private Equity firms and Opportunity Funds such as Blackstone, Oaktree, Deutsche Annington and Morgan Stanley bought as well. In total, funds from the UK and the US acquired roughly 300000 rented properties for €13.5bn in 2004. This trend is expected to continue (2005: 250,000 flats/properties are expected to be purchased by foreign investors).

The article concludes that, keeping in mind local variations, property is a good investment at the moment, both for renting out and living in it.

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German property sounds like a good bet!

I haven't read the full article but I would advise caution as to the choice of location: probably most city centres are a good bet but rural locations, especially in the former East I wouldn't touch with a bargepole.

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also bare in mind where a lot of the investment is made from.

those linked into foreign property are also likely to see large mortgages against property in the uk not returning enough to cover the loan. also with rising IR's in the UK innevitable any foreign market that outstrips the locals ability to invest is going to be extremly suceptible to the UK's market.

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there are 2 types of growth.

internal and external.

weve been eating internal for far too long, while abandoning our external growth to the point of negligence.

i suppose banking is doing well though. using internal growth to invest externally ?

Edited by right_freds_dead

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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